Tractor Growth to Slow in FY27 as Monsoon Weighs

Tractor sales grew very strongly in FY2026.

ICRA expects them to grow much more slowly in FY2027.

This is partly because sales were already high last year.

The main worry is that some areas have not received enough rain.

Less rain can reduce crop production and farmers’ incomes.

Farmers with less money may delay buying new tractors or replacing old ones.

However, tractor makers may still keep healthy profits because their costs are expected to remain stable.

Better rainfall and stronger rural incomes could help tractor demand recover.